{"id":6620,"date":"2025-09-10T04:51:13","date_gmt":"2025-09-10T04:51:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/6620\/"},"modified":"2025-09-10T04:51:13","modified_gmt":"2025-09-10T04:51:13","slug":"kenya-plans-to-borrow-1-billion-using-debt-for-food-swap","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/6620\/","title":{"rendered":"Kenya plans to borrow $1 billion using debt for food swap"},"content":{"rendered":"<p>\n        Kenya plans to raise $1 billion through a debt-for-food security swap by March 2026, according to a finance ministry document released on Tuesday.\n    <\/p>\n<p>\n        \u201cIn managing external debt, the government will prioritize non-market-based measures, including debt-swap arrangements, which restructure existing obligations without creating new debt, thereby alleviating medium-term fiscal pressures,\u201d the ministry said.\n    <\/p>\n<p>\n        The document did not specify the parties involved, though Finance Minister John Mbadi said in April that Nairobi was in advanced talks with the World Food Programme on a potential deal, according to a <a href=\"https:\/\/www.reuters.com\/world\/africa\/kenya-plans-borrow-1-billion-using-debt-food-swap-finance-ministry-document-2025-09-09\/\" id=\"c1826d8e-ad3d-437a-a40b-e2ab3cf0267b\" rel=\"nofollow noopener\" target=\"_blank\">Reuters<\/a> report.\n    <\/p>\n<p>\n        Debt-for-food security arrangements allow governments to restructure existing debt into cheaper facilities, typically backed by external partners, on the condition that the savings are directed toward food-related programs.\n    <\/p>\n<p>\n        If completed, the swap would mark the second of its kind, following a \u20ac60 million agreement with Germany in 2024.\n    <\/p>\n<p>\n        East Africa\u2019s largest economy has been diversifying its funding sources as it navigates volatile global markets and elevated U.S. interest rates.\n    <\/p>\n<p>\n        In addition to the planned debt-for-food swap, the finance ministry said Kenya intends to issue $500 million in sustainability-linked bonds by March 2026, further showing its push to expand financing options.\n    <\/p>\n<p>\n        In addition, it expects to borrow $757 million from the World Bank by March 2025 and a further $457 million by June next year.\n    <\/p>\n<p>        Economic stability under pressure<\/p>\n<p>\n        The country has so far managed to preserve relative macroeconomic stability, despite persistent fiscal challenges. A diversified economy, a strong financial sector, and a comparatively stable exchange rate have helped Kenya maintain its lead in East Africa\u2019s economic race.\n    <\/p>\n<p>\n        Yet, cracks are emerging. After nearly a year of subdued inflation, consumer prices are once again on the rise, casting doubt on the durability of recent interest rate cuts.\n    <\/p>\n<p>\n        According to the Kenya National Bureau of Statistics, annual inflation accelerated to 4.1% in July 2025, a three-month high compared to 3.8% in June.\n    <\/p>\n<p>\n        The inflationary surge is partly due to the scarcity of vital food products, particularly maize, potatoes, and green vegetables, which account for a sizable share of the ordinary Kenyan household&#8217;s diet.\n    <\/p>\n","protected":false},"excerpt":{"rendered":"Kenya plans to raise $1 billion through a debt-for-food security swap by March 2026, according to a finance&hellip;\n","protected":false},"author":2,"featured_media":6621,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,46],"class_list":["post-6620","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/6620","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=6620"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/6620\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/6621"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=6620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=6620"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=6620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}